Demand notice service and jurisdictional objections can invalidate tax recovery proceedings under the Second Schedule.

Non-service of the demand notice was treated as going to the root of the authority to commence tax recovery proceedings under the Second Schedule to the Income-tax Act, 1961. The remaining jurisdictional objections, including service validity and whether the property was liable to attachment, involved disputed questions of fact that had to be examined by the original authority after hearing both sides. The impugned attachment and sale proceedings were set aside and the matter was remitted for fresh determination with an adequate opportunity of hearing.

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Issues: Whether non-service of demand notices and other jurisdictional objections to the tax recovery proceedings vitiated the attachment and sale proceedings under the Second Schedule to the Income-tax Act, 1961.

Analysis: Non-service of the demand notice was treated as going to the root of the authority to initiate recovery proceedings. The remaining objections also involved disputed questions of fact, including the validity of service and the liability of the property to attachment, which required examination by the original authority after hearing the parties.

Conclusion: The impugned order was set aside and the matter was remitted to the authority for fresh determination after giving the parties an adequate opportunity of hearing.

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